The BSI Leadership and Network Breakfast 9 March 2012

Conviction of the Inner West Story - UTOPIA!!”

This months Ark Informer relates specifically to property research in the Inner West in Sydney. 

We look forward to your feedback.

best regards

Ivan

Since 3 quarter 2008, Ark Total Wealth has focussed it’s property research gaze on the Inner West area of Sydney and generated some excellent returns for clients in the process. The greater Sydney area as a whole whilst generally having higher prices than other capital cities, is blessed with high natural rental yields of 5.0% +, low vacancy rates, and a chronic undersupply in new dwelling completions. ANZ Economics notes that dwelling completions for Sydney are currently running at about 26,000 (about half the amount of a decade ago) and well below current requirements. They also report a serious disparity with dwelling starts, estimated for 2011 at 130,000, down from the 149,000 of 2010, and well shy of the estimated 180,000 required to fill current demand.

The practical outcome of such numbers are continuing upwards pressure on rents and by virtue of this also capital values, with ANZ predicting rents will rise by "close to double digits".

Drilling down further, since 2008 the inner west as a region has been a consistent out-perfomer in the Sydney property market, as purchasers take advantage of it’s close proximity to the CBD, access to rail and bus transport, a rapid gentrification and urbanisation of many inner west suburbs, and more affordable prices relative to the already highly priced blue ribbon areas of the East and North Shore.

As can be seen below from our past inner west projects (see below), capital growth and market performance in the inner west has been strong in the central core suburbs, and as prices have risen capital growth has radiated in rings outwards from the core, as suburbs such as Annandale, Newtown, Stanmore and Erskineville become less affordable. Thus suburbs such as Marrickville, Arncliffe, St Peters and Dulwich Hill have begun to perform due to the attraction of their lower price point. This is a growth movement we have been following for the last 24 months in terms of our chosen projects.

Research wise and also anecdotally, the inner west has and continues to be the powerhouse of Sydney property price growth.

See the Domain article by Isabel King dd September 24 2011 

(quote) “This year's star performers have one thing in common. The inner west is holding its ground far better than most other areas around Sydney.”

• In 4 quarter 2010, Australian Property Monitors predicted that units would achieve a higher rate of capital growth than houses over the coming year as investors and a limited number of first-home buyers look for affordable properties.   They went on to list their top 10 suburbs in terms of capital growth prospects with Summer Hill, Hurlstone Park, Petersham and Dulwich Hill all getting a mention.

• In early 2011, St George Bank’s National Property Hotspots Report 2011 was published listing 24 strong investment suburbs around Australia. Arncliffe was among one of 5 Sydney suburbs mentioned, and similar to APM 4 of the 5 suburbs they listed basically adjoin each other, being Arncliffe, Sydenham, Eastlakes and Newtown.

• In February 2012, PRD Nationwide listed Marrickville their top Sydney property hot spot for 2012 (see below):

See the Property Observer dd 7 February 2011, Larry Schlesinger identifies Marrickville as 2012 Sydney Hotspot 

When we combine the results of the APM, St George and PRD Nationwide reports we notice an interesting correlation in the close proximity of the prime growth suburbs both have listed.

Red: Aus. Property Monitors listed suburbs

Yellow: St George listed suburbs

Purple: PRD Nationwide

What is clear from the above consensus is that the area featured in the map above is considered a strong future capital growth market by all three research houses.

With a wealth of statistics and external opinions pointing towards the Inner West as being one of Sydney’s potential top performing property markets, further detailed analysis on development particulars help identify value for money and help establish an understanding of how, why and what sort of capital growth is being achieved.

Charting growth of ATW Property in the Inner West

Since late 2008 Ark Total Wealth have strategically recommended a select offering of developments in the Inner West region to their clients, based on the type of forward looking research and statistics detailed above, and also on careful analysis of the projects at hand. Now more than 2 years down the track, our clients have begun to reap impressive results from these acquisitions.

Camperdown – Trio Apartments – 1 bed, 1 bath, 1 car

Exchanged: December 2008, Completed: July 2009

Purchase Price: $470,000

Current Valuation: $570,000 (based on sales evidence)

Current Rental: $560 pw

Balmain – Boutique Apartments – 1 bed, 1 bath, 1 car

Exchanged: April 2009, Completed: September 2010

Purchase Price: $550,000

Current Valuation: $612,000 (based on sales evidence)

Current Rental: $550 pw

Leichhardt – The Factory – 2 bed, 2 bath, 1 car

Exchanged: Mid 2009, Completed: January 2011

Purchase Price: $640,000

Current Valuation: $730,000 (based on sales evidence)

Current Rental: $710 pw

Petersham – The Majestic Theatre Apartments – 1 bed, 1 bath, 1 car

Exchanged: September 2010, Completed: Estimated 2012

Purchase Price: $473,000

Current Valuation: $501,300 (based on sales evidence)

Estimated Rental: $470 pw

An interesting statistic to note is the internal price per square meter for 1 bedroom apartments (psm) of the above three projects which at time of purchase were:

Camperdown: $8,245 psm

Balmain:              $10,000 psm

Petersham:        $9,260 psm

Dulwich Hill:      $8,403 psm (1 bedroom) AVAILABLE

We note that the cost of Utopia at Dulwich Hill on a per square metre basis is broadly comparable with those of our previous inner west project before those projects experienced the increase in capital growth that they have had.

Furthermore, we believe that the slated Dulwich Hill light rail extension due for completion in 2014 will exert a positive impact on property prices in the area. The existing light rail line that terminates at Lilyfield is being extended to Dulwich Hill as illustrated below. This will provide a further public transport access line into the city in addition to heavy rail and bus lines.

The red arrow denotes the proximity of the Dulwich Hill development to the Dulwich Hill light rail interchange. The development is also 600 metres from Hurlstone Park train station. There is a proven causal relationship between construction of light rail lines and property price growth as illustrated below:

http://www.smh.com.au/nsw/light-rail-to-push-up-house-prices-20100312-q469.html

(quote) “Property values along light rail corridors could soar, a new report suggests, but experts say governments would need to temper the price rises with more affordable housing....The planned extension of Sydney's light rail, from the Lilyfield terminus to Dulwich Hill train station, is also likely to affect property values in Leichhardt, Haberfield, Lewisham, Summer Hill and Dulwich Hill.”

We therefore believe that given the strong inner west story and the considerable growth achieved thus far, coupled with comparatively similar value for money on an internal pricing basis, Utopia apartments represent good for value for money in what is an area that is trending towards strong future capital growth.

The Utopia Apartments – Dulwich Hill

Situated close to local transport, schools and parks, the Utopia Apartments are a luxury boutique development of only 32 units.

Thoughtfully designed to maximise space and natural light, each home offers a clever floor plan to ensure generous in/outdoor living with style, function and quality finishes without.

Project Name: The Utopia Apartments

Project Description: 32 apartments – 13 one bedroom, 16 two bedroom, 3 three bedrooms                                                        

Size range (selected apartments):  Internal 53.84 sqm to 60.63 sqm | External 11.08 sqm to 28.25 sqm

Car park: 1 car park per apartment

Price:  $429,000 to $489,000 (one bedrooms)

Rental Estimate:  $430 to $460 per week (depending on actual apartment)

Amenities & Environment

• Dulwich High School                1.5km
• Trinity Grammar School           900m
• TAFE NSW                                    3.6km
• University of Sydney                 6.9km
• Woolworths Supermarket        500m
• Hurlstone Park Train Station  600m
• M5 East Freeway                          5km
• Marrickville Strip Shopping    2.7km
• Sydney Airport                            7.4km
• Sydney Private Hospital         1.8 km

If you are interested in learning more please click here and Alex Lee or Chris Magnus will contact you, or call Ark at 02 926223333.

My Nephew needs your help!!

OK.... need your help.... my nephew Bradley "Suppy" Klibansky produces a programme hosted by "Hutchie" and "Pickers" called "off the bench" ... see message below... Please like and get your friends to like....

Uncle Lendal (my nickname!)..need your help..i need to get 1500 'likes' on the radio show I produce by this Saturday..it's a order from the Hutch..please can you help!! Get your friends involved. Lots of great prizes and competitions every week. All they have to do, is click the 'off the bench' link below and 'like' the page. Thanks

http://www.facebook.com/OffTheBenchTeam

"twiter commentary"

bsivc Ivan Kaye need your help! my nephew "Suppy" produces "off the bench" hosted by #Hutchie and #Pickers 500 'likes' needed .....facebook.com/OffTheBenchTeam

BradKlibansky Brad Klibansky @bsivc thanks lendal. @OffTheBenchTeam is the best sport and entertainment radio show. Saturday's from 9am-12pm across Australia. 

Please like and if you win prizes and have comments about the programme, please leave your comments here!!

World Collapse Explained in 3 Minutes

Click here for a hilarious explanation - It would be great to like the liquidity page -  feel free to "get a Quote" or check out our various loan calculators.

What Does Bill Evans, chief economist of Westpac say about Reserve Banks decision to hold interest rates?

• Reserve bank has decided to hold interest rates as they believe GFC is now past and the Australian Economy is on an average level.However, not for construction, manufacturing and retail - mining is holding up the fort!
• Unemployment rate is increasing (4.8% - 5.2% and estimated to go to 5.3%)
• Consumer sentiment not great
• A$1.08 - Bill Evans forecasts parity in next 6 months 

Conclusion, Bill thinks that there will be another cut in interest rates in next 6 months

FOr more information about finance, see www.liquidityfinance.com.au or
like its facebook page

Interest Rates on Hold - What is your next step?

With the financial turmoil, Europe's debts and current credit squeeze, you need to  hope for the best, but prepare for the worst!

Remeber the adage - buy in gloom and sell in boom!

To weather the potential storm or take advantage of potential opportunities, you need money or available money.

If you have equity in your property, consider of taking a line of credit. Cash is king. Loans will become harder, and what you are able to get now, you may not be able to get later.

Is it the right time to lock in interest rates over the next 3 - 5 years? I am going to!.

Interest rates may get cheaper. The risk, in my view, isn't the interest rate, but the ability to get cash due to a potential credit squeeze!

Those with lines of Credit or available funds will have a competitive edge!

Click here for Michael Luca's commentary on the RBA's interest rate decision. 

Join Liquidity's facebook page by clicking here , and receive a complementary, comprehensive property report on your property. (Valued at $49.95!) See below for more details.

There is no harm in getting a complementarty health check - call Liquidity to get one or 

contact them by clicking here  

Networking Breakfast at the Amora - great time had by all!

On Tuesday the 24^th January at 7.00am, BSI connect held their first Leadership and Networking Breakfast at the Amora Jamison in Sydney’s CBD, and what a fantastic morning it was.

With a filled conference room of 40 people, Ivan Kaye the CEO of BSI welcomed everyone and introduced himself and BSI’s two John Maxwell accredited coaches Ivan Ang and Grahame Murphy.

Ivan Ang and Grahame have been working for the past few months on BSI Connect’s mastermind group. This 8 week program that takes place for an hour each week follows John Maxwell’s “21 irrefutable laws of leadership” and focuses on coaching business minded people on how to grow as a leader and the benefits it brings.

 The next stage of leadership growth being offered is their new Inner Circle Club. This valuable information-focused network group begins in March and not only gives members an opportunity to network with others once a month, but to work through John Maxwell’s text “Everyone Communicates, Few Connect” in depth.

The breakfast began with an introduction to this program, which not only was informative and interesting but included attendees as they gave their personal experiences of how they have applied “connecting” principles in their past.

Whilst enjoying breakfast, Ivan Kaye explained the concept and importance of networking in the business world, which he demonstrated by getting all attendees out of their seats for a 15-minute game of speed networking. Laughs were shared, business cards were exchanged and everyone walked back to their seats having learnt about a lot of people in the room after being able to have 3-minute conversations with their “date” and switching at the sound of a bell.

When asked who had made an arrangement to follow up with someone in the breakfast, every person put up their hand!   This was definitely a highlight of the morning.

A leadership and development plan developed by Ivan Ang and Grahame was provided and allowed everyone to work through their worksheet together, applying the information discussed during the workshop and giving each person something of value to take home and allow them to be able to reflect on their goals for 2012 and how to achieve them.

The workshop drew to an end at 9.00am where everyone left happy and feedback forms showed an enormous interest by attendees to join either the mastermind 8 week leadership course or the Inner circle club in search of adding more value to themselves and increasing their leadership potential.

A special congratulations to the winner of the raffle “Bruce Murphy”, a graduate of the mastermind group who won John Maxwell’s “ 5 levels of leadership” which helps people understand the qualities of an effective leader and how to develop those qualities.

Thank you to all those attended, we are very pleased with all the positive feedback and are looking forward to our next breakfast on Tuesday March 6^th.  

If you are interested in attending the breakfast click here to register your interest

A really powerful ‘must do’ for you in February

Every now and again, you come across someone in your life who really impacts the way you do things.

Someone who helps you make HUGE shifts in your business.

Paul Dunn does that — hugely and consistently.

And he does it unlike anyone else we know.

At BSI CONNECT we’re also seeking to find extraordinary opportunities for you to gain great new insights. And that’s precisely why I’m letting you know that Paul’s coming back to Australia in a series of very special programs around our country. It means you can experience the profound impact he has first-hand.
Without doubt, Paul gives you the most valuable, authentic, difference-making and downright different, inspiring program you could ever experience. Put simply — if you’re in business or planning to start one, it’s a must.
People rightly regard Paul as a legend. This new program [it’s appropriately called: INSPIRE!] changes businesses and it changes lives. I can tell you that for absolute sure. So I’m suggesting to you in the strongest way I know how to register now. You can check it out (and register) right here:

20 February, Perth: http://bit.ly/INSPIREPBSI

21 February, Melbourne: http://bit.ly/INSPIREMBSI

22 February, Sydney: http://bit.ly/INSPIRESBSI

23 February, Gold Coast: http://bit.ly/INSPIREGBSI

24 February, Newcastle: http://bit.ly/INSPIRENBSI

When you do that now, you can get super early bird seating at a stunning 72% off the full ticket figure. And that applies for multiple tickets too.
Check the relevant link now — you’ll find all the reasons why this grows your business right here, right now. As simple as that.
Or, as the Entrepreneur of the Year in the UK, Steve Pipe, said recently:
“I have been booking big name professional business speakers for the last 10 years. And having spent more than £250,000 in the process I can confidently say that Paul Dunn is the best speaker I have ever seen. And it is not just his presentation style that is stunning, his content is too. I have seen his ideas and presentations transform the results of hundreds of UK businesses, including my own. So if you want better results, you simply must go to this seminar!”
Steve is right.
Click the relevant link for you, check it all out and register now to get that stunning 72% OFF normal ticket prices.  This is a program you’ll remember and benefit from — for life.
Regards,
Derek Adam
CEO
BSI Connect

India Part 3 - Doing Business in India

Our partner Raviv Byron, talks to us about how to do business in India